Align Technology, Inc. (NASDAQ:ALGN) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is positive: Align Technology has an average rating of "Moderate Buy" from 15 covering analysts, with an average 12-month price target of about $206.07.
• Recent earnings beat expectations: The company reported quarterly EPS of $2.58 versus the expected $2.26, and revenue of $1.04 billion versus the $1.02 billion consensus estimate. Revenue also rose 6.2% year over year.
• Shareholders got a buyback plan: Align Technology’s board approved a $200 million stock repurchase authorization, covering up to about 1.6% of outstanding shares.

Shares of Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) have been given an average rating of "Moderate Buy" by the fifteen ratings firms that are covering the company, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $206.0714.

A number of research firms recently weighed in on ALGN. Piper Sandler raised their price target on Align Technology from $220.00 to $235.00 and gave the company an "overweight" rating in a report on Tuesday, April 21st. Morgan Stanley increased their target price on Align Technology from $169.00 to $188.00 and gave the stock an "equal weight" rating in a report on Friday, April 24th. Citigroup assumed coverage on Align Technology in a research note on Wednesday, April 15th. They issued a "buy" rating and a $240.00 target price for the company. Evercore lifted their price target on Align Technology from $200.00 to $220.00 in a report on Thursday, April 30th. Finally, BMO Capital Markets initiated coverage on shares of Align Technology in a report on Wednesday, July 8th. They set an "outperform" rating and a $209.00 price objective on the stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ALGN. Sequoia Financial Advisors LLC lifted its stake in shares of Align Technology by 320.1% in the 4th quarter. Sequoia Financial Advisors LLC now owns 7,986 shares of the medical equipment provider's stock valued at $1,247,000 after purchasing an additional 6,085 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in shares of Align Technology by 35,513.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 545,604 shares of the medical equipment provider's stock worth $85,196,000 after purchasing an additional 544,072 shares during the period. Polianta Ltd acquired a new stake in shares of Align Technology during the fourth quarter worth $1,623,000. Hunter Perkins Capital Management LLC increased its holdings in Align Technology by 383.1% in the fourth quarter. Hunter Perkins Capital Management LLC now owns 43,842 shares of the medical equipment provider's stock valued at $6,846,000 after purchasing an additional 34,767 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC increased its holdings in Align Technology by 63.0% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 25,343 shares of the medical equipment provider's stock valued at $4,282,000 after purchasing an additional 9,792 shares during the last quarter. Institutional investors own 88.43% of the company's stock.

Align Technology Stock Down 2.8%

Shares of Align Technology stock opened at $172.46 on Thursday. Align Technology has a 12-month low of $122.00 and a 12-month high of $208.30. The stock has a market capitalization of $12.35 billion, a P/E ratio of 28.94, a price-to-earnings-growth ratio of 1.82 and a beta of 1.67. The company has a 50-day simple moving average of $172.96 and a 200 day simple moving average of $174.98.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The medical equipment provider reported $2.58 earnings per share for the quarter, topping the consensus estimate of $2.26 by $0.32. The firm had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.02 billion. Align Technology had a net margin of 10.50% and a return on equity of 15.82%. The company's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.13 earnings per share. On average, equities analysts anticipate that Align Technology will post 9.48 earnings per share for the current year.

Align Technology announced that its board has approved a stock buyback plan on Wednesday, April 29th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the medical equipment provider to repurchase up to 1.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

About Align Technology

Align Technology, Inc NASDAQ: ALGN pioneered the use of digital technology in orthodontics through the development of the Invisalign system, a series of clear, removable aligners that provide an alternative to traditional metal braces. Since its founding in 1997 by Zia Chishti and Kelsey Wirth, the Tempe, Arizona–based company has expanded its focus to include intraoral scanners, CAD/CAM software for dental laboratories and comprehensive digital dentistry solutions.

The company's signature Invisalign system leverages 3D imaging and computer-aided design (CAD) to create customized aligners that gradually reposition teeth, improving patient comfort and treatment predictability.

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